I would buy NAB and these blue chip ASX dividend shares

Although the Reserve Bank looks unlikely to cut the cash rate at Tuesday’s meeting, I don’t think it will be long before rates go lower.

This is likely to put a lot of pressure on the interest rates being offered with term deposits and savings accounts.

In light of this, if you haven’t done so already, I would suggest you consider buying one of these blue chip ASX dividend shares for a source of income:

BHP Group Ltd (ASX: BHP)

I think a recent pullback in the BHP share price ought to be seen as a buying opportunity for investors. Especially after its strong first half and management’s confirmation that it is on track to achieve both its full year production and costs guidance. As long as the coronavirus doesn’t curtail global economic growth and put pressure on commodity prices, I’m confident BHP will deliver another bumper profit result in FY 2020. Which is likely to mean another year of generous dividends for investors. I estimate that BHP’s shares currently offer a fully franked forward 6% dividend yield.

National Australia Bank Ltd (ASX: NAB)

Another blue chip dividend share to consider buying is NAB. I think its shares are trading at a very attractive level for income investors. Especially given its improving outlook due to the housing market recovery and its overweight exposure to the SME lending market. Another positive is that NAB’s shares provide one of the most generous dividend yields on the market right now. This is even after factoring in a probable dividend cut in FY 2020. I estimate that its shares offer investors a fully franked forward 6.3% dividend yield.

Telstra Corporation Ltd (ASX: TLS)

A final blue chip dividend share to consider buying is Telstra. I think the telco giant is a top option right now due to its greatly improved outlook. I believe a combination of cost cutting, rational competition, and a positive growth trajectory in the mobile business have positioned Telstra perfectly to return to growth from FY 2022. In the meantime, though, I am confident its free cash flow will support its current dividend of 16 cents per share. Based on this, Telstra’s shares offer a fully franked ~4.1% dividend yield.